Bullion hit a three-month high as technical buying helped
the precious metal surpass a key resistance level near $1,765 an
ounce.

“Right now you’re looking at gold and it looks like it wants
to break out again,” said Levente Mady, market strategist at
Union Securities. “If we get past $1,800, the next stop is
$1,925 and other than that the sky’s the limit.”

Gold’s upswing boosted the index’s heavyweight materials
sector by 1.8 percent. Barrick Gold, the world’s top
gold producer, jumped 2.5 percent to C$49.48, while Goldcorp
rose 2.3 percent to C$49.26.

The Toronto Stock Exchange’s S&P/TSX composite index
ended up 77.90 points, or 0.6 percent, at 12,701.26,
its highest close since Sept. 7, 2011.

Oil and gas issues were up 0.8 as Brent crude oil reached a
nine-month high on Wednesday, supported by Iran-related supply
worries. Suncor Energy was the biggest heavyweight
gainer, rising 2.5 percent to C$35.61.

Talisman Energy shares climbed 3 percent to C$14.26
after the oil and gas producer said it reached a $280 million
($280 million) deal with Mitsubishi Corp, giving the Japanese
company entry into nine of Talisman’s onshore licenses in Papua
New Guinea’s natural gas-rich Western Province.

Resource gains have led the TSX to outdistance the major
U.S. stock indexes this week and Mady said that trend could
continue if gold and oil prices stay strong.

“Even if we do get a bit of a breather in the States, I
would expect Canada to continue to outperform here on a relative
basis,” he added.

The market mood was also lifted as U.S. home resales surged
in January to a 1-1/2 year high, while the supply of properties
on the market was the lowest in almost seven years, pointing to
a nascent housing recovery in Canada’s top trading partner.

The gradually brightening U.S. economy has helped the TSX
rally more than 5 percent this year despite continued uneasiness
about conditions in Europe.

“It’s a North American phenomenon,” said Rick Hutcheon,
president and chief operating officer at RKH Investments. “We’ve
become a little more inward looking and a lot of that has been
forced on us by the grief that’s going on in Europe.”

Potash Corp, the world’s top fertilizer producer,
rose 1 percent to C$47.34 on hopes for increased U.S. demand.

Optimism about Tuesday’s approval by European officials of
another multibillion-dollar bailout for Greece waned on
Wednesday as data showed the euro zone may be sliding back
toward recession.

Preliminary data also showed China’s new export orders
shrank in February in a worrying sign that the euro area debt
crisis is afflicting the Asian powerhouse.

Financial shares fell 0.3 percent. Bank of Nova Scotia
led the retreat, sliding 0.8 percent to C$53.71.

In individual company news, Rogers Communications
rose 1 percent to C$38.15 after it reported a stronger than
expected quarterly profit and raised its dividend.

Gold shares surged nearly 2 percent after bullion hit a
three-month high on Wednesday as technical buying helped the
precious metal reverse initial losses.

“We are seeing all the funds step in. It (technical buying)
is the only thing at the moment that we can pin it on,” said
Frank McGhee, head precious metals trader at Integrated
Brokerage Services LLC.

Gold’s upswing boosted the index’s heavyweight materials
sector by 1.7 percent. Barrick Gold, the world’s top
producer, jumped 2 percent to C$49.32 while Goldcorp rose
2.4 percent to C$49.30.

At 2:55 p.m. (1955 GMT), the Toronto Stock Exchange’s
S&P/TSX composite index was up 73.98 points, or 0.6
percent, at 12,697.34, its highest level since Sept. 7, 2011.

The market mood was also lifted as U.S. home resales surged
in January to a 1-1/2 year high, while the supply of properties
on the market was the lowest in almost seven years, pointing to
a nascent housing recovery in Canada’s top trading partner.

“The prospects of the U.S. are beginning to get a little
brighter,” said Rick Hutcheon, president and chief operating
officer at RKH Investments.

“There are signs that there may be some improvement in the
nearer term and that’s what the market has been waiting for.”

Oil and gas issues were up 0.6 as Brent crude oil reached a
nine-month high on Wednesday, supported by Iran-related supply
worries. Suncor Energy was the biggest heavyweight
gainer, rising 2 percent to C$35.43.

The gradually brightening U.S. economy has helped the TSX
rally more than 5 percent this year despite continued unease
about conditions in Europe.

“It’s a North American phenomenon,” Hutcheon said. “We’ve
become a little more inward looking and a lot of that has been
forced on us by the grief that’s going on in Europe.”

Potash Corp, the world’s top fertilizer producer,
rose 1.1 percent to C$47.38 on hopes for increased U.S. demand.

Optimism about Tuesday’s approval by European officials of
another multibillion-dollar bailout for Greece waned on
Wednesday as data showed the euro zone may be sliding back
toward recession.

Preliminary data also showed China’s new export orders
shrank in February in a worrying sign that the euro area debt
crisis is afflicting the Asian powerhouse.

Financial shares fell 0.2 percent. Bank of Nova Scotia
led the retreat, sliding 0.8 percent to C$53.75.

In individual company news, Rogers Communications
rose 1.1 percent to C$38.18 after it reported a stronger than
expected quarterly profit and raised its dividend.

U.S. home resales surged in January to a 1-1/2 year high and
the supply of properties on the market was the lowest in almost
seven years, pointing to a nascent housing recovery in Canada’s
top trading partner.

The data helped the index’s heavyweight materials sector
edge up 0.2 percent. Potash Corp, the world’s top
fertilizer producer, led the group, rising 0.7 percent to
C$47.21 on hopes for increased U.S. demand.

“The prospects of the U.S. are beginning to get a little
brighter,” said Rick Hutcheon, president and chief operating
officer at RKH Investments. “There are signs that there may be
some improvement in the nearer term and that’s what the market
has been waiting for.”

At 12:04 (1704 GMT), the Toronto Stock Exchange’s S&P/TSX
composite index was up 2.38 points at 12,625.74, the
TSX’s highest level since Sept. 9, 2011.

Oil and gas issues were up slightly as Brent crude oil
reached a nine-month high on Wednesday, supported by
Iran-related supply worries. Suncor Energy was the
biggest heavyweight gainer, rising 1 percent to C$35.10.

The gradually brightening U.S. economy has helped the TSX
rally more than 5 percent this year despite continued unease
about conditions in Europe.

“It’s a North American phenomenon,” Hutcheon said. “We’ve
become a little more inward looking and a lot of that has been
forced on us by the grief that’s going on in Europe.”

Optimism about Tuesday’s approval by European officials of
another multibillion-dollar bailout for Greece waned on
Wednesday as data showed the euro zone may be sliding back
toward recession.

Preliminary data also showed China’s new export orders
shrank in February in a worrying sign that the euro area debt
crisis is afflicting the world’s top consumer.

Financial shares fell 0.4 percent. Toronto-Dominion Bank
mirrored the sector’s drop, sliding 0.4 percent to C$78.87.

In earnings news, Rogers Communications shares
rose 0.9 percent to C$38.12 after it reported a stronger than
expected quarterly profit and raised its dividend.

The 130 billion euro ($172 billion) deal was finalized after
euro-zone officials forced Athens to commit to unpopular cuts
and as private bondholders agreed to accept deeper losses.
It means Greece will not default on 14.5 billion
euro in bond redemptions due next month.

“This is about taking the downside risk off the market, but
it doesn’t give you the upside part of the equation,” said
George Vasic, equity strategist and chief economist at UBS
Securities Canada. “It’s got to be sustained by good (global)
economic data.”

The Toronto Stock Exchange’s S&P/TSX composite index
finished up 165.06 points, or 1.3 percent, at
12,623.36, its biggest one-day gain since Jan. 3 and its highest
level since Sept. 8, 2011.

Signs that Europe’s debt crisis is being stabilized and of
health in the U.S. recovery have rallied the TSX more than 5
percent so far this year.

In the United States, the Dow touched 13,000 on Tuesday for
the first time since just before the financial crisis took hold
in 2008.

Nearly all of the TSX index’s 10 main sectors were higher,
led by the heavily weighted materials group, which gained 3
percent.

Gold miners led the way, with Barrick Gold up 3
percent at C$48.25 as the world’s top gold miner rode higher
bullion prices. Goldcorp climbed 2.9 percent to
C$48.16 and Yamana Gold Inc jumped 4.5 percent to
C$17.13.

Base metal miners also rose as investor appetite for risky
assets such as industrial metals increased. Gains were
led by First Quantum Minerals, up 3.7 percent at
C$23.06, and Teck Resources, which rose 3 percent to
C$39.44.

Potash Corp, the world’s largest fertilizer
producer, climbed 2 percent to C$46.88 on hopes that a more
stable European economy would help global demand.

Oil and gas shares pushed up 1.4 percent as oil prices rose
on heightened euro zone optimism and on stricter sanctions
against Iran. Suncor Energy was the biggest
heavyweight gainer, rising 1.8 percent to C$34.74.

Oilfield services company Flint Energy spiked 66
percent to C$24.79 after U.S. engineering company URS Corp said
on Monday it will buy it for C$1.25 billion ($1.25 billion) in
cash.

Flint’s pending acquisition boosted shares in other Canadian
construction companies that are active in the oil and gas
sector. Aecon Group, for instance, jumped more than 8
percent to C$12.44.

Financial stocks lagged the TSX index’s gains, but still
climbed 1 percent. Royal Bank of Canada led the group,
rising 1.1 percent to C$53.72.

The Greek euphoria overshadowed some mixed Canadian data on
Tuesday. Retail sales dropped for the first time in five months
in December, though wholesale trade rose in the final month of
last year.

“These numbers look weak in relation to the first half of
2011, but we knew Canadian consumers have been a little more
prudent so it’s not entirely surprising,” said Carlos Leitao,
chief economist at Laurentian Bank Securities.

European officials finalized a 130 billion euro ($172
billion) bailout for Greece on Tuesday to avert a chaotic
default next month after forcing Athens to commit to unpopular
cuts and for private bondholders to accept deeper losses.

The deal means Greece will not default on 14.5 billion euro
in bond redemptions due on March 20.

“It’s good news in that there was the possibility that
things could have fallen apart and nobody knew exactly what that
would mean if they were to miss the bond payments,” said Carlos
Leitao, chief economist at Laurentian Bank Securities.

“This is just the end of Act 5 in the Greek drama, there
will be other acts to follow.”

The Greek euphoria overshadowed some mixed Canadian data on
Tuesday that showed retail sales dropped for the first time in
five months in December, though wholesale trade rose for in the
final month of last year.

By 11 a.m. (1600 GMT), the Toronto Stock Exchange’s S&P/TSX
composite index was up 139.89 points, or 1.1 percent,
at 12,598.19, its highest level in more than two weeks.

Nearly all of the TSX’s 10 main sectors were higher, led by
the heavily weighted materials group, which gained more than 2
percent.

Gold miners led the way, with Barrick Gold up 3
percent at C$48.26 as the world’s top gold miner rode higher
bullion prices. Goldcorp climbed 2.5 percent to
C$47.96 and Yamana Gold Inc jumped nearly 5 percent to
C$17.20.

Base metal miners were also boosted as news of the Greek
deal increased investor appetite for risky assets such as
industrial metals. Gains were led by First Quantum
Minerals, up 4.2 percent at C$23.17, and Teck Resources
, which rose 2.7 percent to C$39.34.

Potash Corp, the world’s largest fertilizer
producer, climbed 2 percent to C$46.87 on hopes that a more
stable European economy would help global demand.

Energy shares also pushed above 1 percent as oil prices rose
on increased euro zone optimism and on increased sanctions
against Iran.

Suncor Energy was the most influential gainer,
rising 2 percent to C$34.82.

Oil and gas minnow Flint Energy saw its share price
spike 66 percent to C$9.88 after U.S. engineering company URS
Corp said on Monday it will buy the oilfield services company
for C$1.25 billion ($1.25 billion) in cash.

Financial stocks lagged the broader index’s gains, but still
climbed 0.7 percent. Toronto-Dominion Bank led the
group’s gains, rising 0.8 percent to C$79.15.

Soft earnings from Canada’s top gold miners this week
dragged on the heavyweight materials sector, which fell 1
percent. Financial shares were down 0.1 percent, hurt by a big
quarterly loss reported by Fairfax Financial Holdings.

Among miners, Barrick Gold fell 2.4 percent to
C$46.83 after the country’s largest gold producer reported an
increase in quarterly operating profit on Thursday, but still
fell short of expectations.

Smaller miners Kinross Gold and Agnico-Eagle
also weighed after both reported big impairment charges.
Kinross was down 1.8 percent at C$10.87, and Agnico-Eagle fell
3.5 percent to C$35.27.

Gold-mining stocks have been helped by a 10 percent rise in
spot gold so far this year, but the precious metal’s price has
recently begun to fluctuate with the euro and on Friday it fell.

“You’re seeing the (gold) stocks reflect a bit more of that
volatility,” said Craig Fehr, Canadian investment strategist at
Edward Jones in St. Louis, Missouri. “It’s more about what the
specific companies are doing in terms operation as opposed to
just participating in the huge updraft from the rising price in
gold.”

The Toronto Stock Exchange’s S&P/TSX composite index
closed down 27.29 points, or 0.2 percent, at 12,458.30
on Friday. The index was still up 0.6 percent for the week.

The index fell despite news that Greece was close to an
agreement with euro zone policymakers on a debt swap deal.
Finance Minister Jim Flaherty said on Friday he was “cautiously
optimistic” that European leaders would resolve the Greek debt
crisis next week.

“Some of the rhetoric that we’ve been hearing over the last
24 hours makes you feel that they’re getting there,” said Fred
Ketchen, director of equity trading at ScotiaMcLeod.

Signs of progress on a Greek deal failed to help Canadian
financial issues. Fairfax Financial pulled the sector down,
sliding more than 4 percent to C$400 after the property and
casualty insurer run by investment guru Prem Watsa said on
Thursday its fourth-quarter loss widened by 56 percent to
C$771.5 million ($773.9 million).

Oil and gas issues edged up 0.4 percent as U.S. crude
futures hit a nine-month high on Friday, supported by tension
between Iran and the West.

Canadian Natural Resources led gains, up 0.8
percent at C$37.38, helped by a rise in Canadian spot natural
gas prices ahead of a holiday weekend.

Monday is a holiday in most of Canada and the Toronto Stock
Exchange is closed.

Higher oil prices also pushed Canada’s annual inflation rate
up to 2.5 percent in January from 2.3 percent in December,
Statistics Canada data on Friday showed. The year-over-year
advance was slightly bigger than the 2.3 percent predicted by
economists.

The Bank of Canada, whose target range for inflation is 1
percent to 3 percent, has made it clear it will keep interest
rates low for the time being. Most economists expect the next
rate hike in early 2013. CA/POLL

“Some of the implication from the CPI numbers today is that
the Bank of Canada might need to move on rates a little bit
ahead of what the market might have expected,” Fehr said.

$1=$1.00 Canadian)

Soft earnings from Canada’s top gold miners this week
dragged on the heavyweight materials sector, which fell 1
percent. Financial shares were down 0.2 percent, hurt by a big
quarterly loss reported by Fairfax Financial Holdings.

Among miners, Barrick Gold tumbled 2.1 percent to
C$46.99 after the country’s largest gold producer reported an
increase in quarterly operating profit on Thursday, but still
fell short of expectations.

Smaller miners Kinross Gold and Agnico-Eagle
also weighed after both reported massive impairment charges.
Kinross was down 2.3 percent at C$10.81, and Agnico-Eagle fell
2.8 percent to C$35.54

The bearish sentiment on gold miners was likely the result
of broader uncertainty among investors about the global economy
and the direction of bullion prices, said Fred Ketchen, director
of equity trading at ScotiaMcLeod.

“They’re just wandering what’s the next thing we’re going to
find out,” Ketchen said. “If that’s positive, the price of gold
probably goes up, and if it’s got a negative twinge to it, the
price of gold probably goes down.”

At noon (1700 GMT), the Toronto Stock Exchange’s S&P/TSX
composite index was down 44.42 points, or 0.4 percent,
at 12,441.17 after opening higher.

The market fell despite news that Greece was close to an
agreement with euro zone policymakers on a debt swap deal.
Finance Minister Jim Flaherty said on Friday he was “cautiously
optimistic” that European leaders would resolve the Greek debt
crisis next week.

“Some of the rhetoric that we’ve been hearing over the last
24 hours makes you feel that they’re getting there,” Ketchen
said.

Signs of Greek progress failed to help Canadian financial
issues. Fairfax Financial pulled the sector down, sliding more
than 6 percent to C$391.78 after the property and casualty
insurer run by investment guru Prem Watsa said on Thursday its
fourth-quarter loss widened by 56 percent to C$771.5 million
($771.3 million).

Oil and gas issues edged up 0.2 percent as Brent crude
hovered near $120 a barrel on Friday, supported by tension
between Iran and the West. Talisman Energy led
gains, up 2.2 percent at C$13.68.

Encana Corp rose 0.8 percent to C$20.51 after
Canada’s third largest energy producer said on Friday it will
sell a 40 percent stake in British Columbia gas assets to
Japan’s Mitsubishi Corp in a C$2.9 billion deal that
will help it shore up a balance sheet battered by weak gas
prices.

Fourth-quarter earnings from Canada’s top gold producers
initially failed to excite, but on closer inspection sharp
dividend increases by Kinross Gold and Agnico-Eagle
won over investors. Kinross and Agnico shares both
jumped 7 percent to C$11.07 and C$36.57 respectively.

“You look at the valuations and they appear to be cheap,”
said Joe Tatusko, chief investment officer at brokerage firm
Westport Resources in Connecticut. “Any sliver of good news is
going to have these guys move.”

Shares of the country’s two biggest gold miners, Barrick
Gold and Goldcorp also rose but by a smaller
margin as both reported solid quarterly results and continued
success in their exploration programs. Goldcorp jumped 4.5
percent to C$47.25, while Barrick was up 1 percent to C$48.

The Toronto Stock Exchange’s S&P/TSX composite index
finished up 123.56 points, or 1 percent, at 12,485.59,
its highest close in a week and its biggest one-day rise since
Jan. 25.

Oil and gas issues also drove gains, rising more than 1
percent after Brent crude prices hit an eight-month high above
$120 a barrel on Iran supply concerns and an expected drop in
North Sea output.

Energy gains were led by Canadian Natural resources
, which rose 1.8 percent to C$37.07. Encana Corp
jumped 4.4 percent to C$20.15 ahead of reporting
fourth-quarter results on Friday.

Cenovus Energy was up 1.4 percent at C$38.61 after
Canada’s No. 2 independent oil producer said on Wednesday its
quarterly profit tripled on production gains.

Nexen Inc’s shares gained 4 percent to C$19.71,
after the oil and natural gas company reported a sharp drop in
fourth-quarter profit, but said it was meeting production
targets and showing some progress.

Risk sentiment was helped by upbeat data that suggested the
U.S. economic recovery remained healthy as jobless claims fell
to a near a four-year low and housing starts rose in January.

In Europe, talks to secure approval of a second Greek
bailout showed signs of progress after a euro zone official said
leaders were finishing the details of a package worth at least
130 billion euros ($169.5 billion).

Financial issues rose, led by Manulife Financial,
which climbed 4.6 percent to C$12.59.

A disorderly default by Athens would wreak havoc with
liquidity in European financial markets due to hefty Greek debt
holdings in the form of credit default swaps and insurance
policies.

“Once you start bringing up liquidity issues in the market,
the market becomes extremely tentative, if not negative,” said
Gareth Watson, vice-president of investment management and
research at wealth management firm Richardson GMP.

Oil and gas producers pulled the index into positive
territory after Brent crude prices climbed to $120 a barrel on
Iran supply concerns and an expected drop in North Sea output.

Energy gains were led by Canadian Natural resources
, which rose 1.3 percent to C$36.88. Cenovus Energy
was up 1.4 percent at C$38.62 after Canada’s No. 2
independent oil producer said on Wednesday its quarterly profit
tripled on production gains.

Risk sentiment was also buoyed by upbeat data that suggested
the U.S. economic recovery remained healthy as jobless claims
fell to a near a four-year low and housing starts rose in
January.

The signs of U.S. growth helped the heavyweight materials
sector reverse early losses from weaker fourth-quarter earnings
by Barrick Gold. The world’s largest gold miner saw its
share price drop 0.6 percent to C$47.26 after its quarterly
profit rose 15 percent, but fell short of expectations.

The sector’s decline was offset by healthy results from
Goldcorp Inc, which rose 3.4 percent to C$46.77, and by
Kinross Gold Corp, which jumped 6.2 percent to C$10.98.

“It’s somewhat neutral on the whole,” said Gareth Watson,
vice-president of investment management and research at wealth
management firm Richardson GMP. “But when you have these
larger-weighted companies coming in with neutral it really
doesn’t do a lot for the index.”

At noon, the Toronto Stock Exchange’s S&P/TSX composite
index was up 85.05 points, or 0.7 percent, to
12,447.08.

The market extended gains on signs of progress to secure a
bailout for Greece after a report on Thursday said euro zone
central banks agreed on a Greek bond swap as part of a deal to
help the debt-laden nation.

In Canada, financial issues were up, led by Bank of Nova
Scotia, which climbed 1 percent to C$53.38.

Greece needs the bailout to finance major bond redemptions
due next month, which if not met could wreak havoc with
liquidity in European financial markets due to hefty Greek debt
holdings in the form of credit default swaps and insurance
policies.

On Thursday, Moody’s warned it may cut the credit ratings of
17 global banks and 114 European financial institutions in
another sign the impact of the euro zone debt crisis is
spreading throughout the world’s financial system.

“Once you start bringing up liquidity issues in the market,
the market becomes extremely tentative, if not negative,” said
Watson.

Oil and gas producers kept Toronto’s main index in positive
territory, rising 0.5 percent after Brent crude hit a six-month
high near $120 a barrel on concern about reduced supplies from
Iran, other Middle East producers and Africa.

Talisman Energy led the sector’s gains, jumping
nearly 5 percent to C$13.13 after the independent oil explorer
said it would cut spending in its largest shale gas production
zone to cope with depressed natural gas prices.

Gainers were tempered by Cenovus Energy Inc, whose
shares slipped 1.3 percent to C$38.08 after its fourth quarter
profit failed to match expectations and it again extended the
search of a joint-venture partner for a northern Alberta oil
sand project.

Overall gains were sparse as doubts re-emerged about
Greece’s long-awaited second bailout after a report that euro
zone officials were considering delaying the rescue package
until after Greece holds elections in April.

The new doubts offset better than expected GDP data from
Germany and France and comments by China’s central bank governor
that the world’s No. 2 economy would play a bigger role in
solving Europe’s debt problems.

“If they can just improve it from being a crisis situation
to a chronic condition, that would be tremendous progress,” said
Stephen Wood, chief investment strategist for North America at
Russell Investments in New York.

The Toronto Stock Exchange’s S&P/TSX composite index
closed up just 7.56 points, or 0.1 percent, at
12,362.03 in thin trade.

Despite the modest gain, six of the TSX’s 10 main sectors
were lower. The influential materials and financial sectors were
flat as miners and banks were hit by investor uncertainty over
the euro zone’s debt crisis.

Miner Teck Resources skidded 1.3 percent to
C$38.48, as copper slid for a fourth consecutive session.

Royal Bank of Canada slipped 0.3 percent to C$53.46.

The Greek drama was enough to keep many nervous investors on
the sidelines as any delay would endanger Athens’ ability to
finance 14.5 billion euros ($19 billion) in bond redemptions due
next month.

“The volumes are speaking to the uncertainties that are out
there,” said Paul Hand, managing director at RBC Capital
Markets. “It looks like we’re avoiding the doomsday scenarios at
the moment, but there’s still not a lot of enthusiasm.”

Offering some support to the market was a key gauge of U.S.
manufacturing, which showed activity in New York state picked up
in February to its highest level in more than 1-1/2 years.

“There’s a slight, but measurable upward bias in the new
data,” said Wood.